Financial Daily from THE HINDU group of publications
Tuesday, Aug 20, 2002

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Opinion - Letters

Bank staff retail lending

This is with reference to SBI planning to tap the staff for their increased deployment of funds in retail lending. In most banks, the staff members enjoy several loan facilities. Instead of varying the type of loans with various covenants entailing manpower utilisation, which can be gainfully employed in the post-VRS scenario, it may make sense to evolve a single operating facility with the eligible limit being linked to the gross salary of an employee. This facility and the house-building advance should be the only loan facilities which would eliminate the need for the cumbersome administrative procedures. As the operative facility gives flexibility without burdening the employee and the credit offtake is likely to improve without endangering safety of funds, banks should come out with some innovative scheme.

R. S. Raghavan


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